FORFEITED.

New Zealand Herald, Volume XLIX, Issue 14932, 4 March 1912, Page 5

FORFEITED.

LLFE-INTEREST IN AN ESTATE.

"It is clear, I think, that the effect of the document executed by the- plaintiff Duncan Henry McGregor, on October 18, 1911, was to terminate his life interest under the trusts declared by his father's will of and concerning the one-seventh part of tho residue of the- estate." This was tho pith of an interesting judgment delivered by His Honor Mr. Justice Sim, in the Supreme Court at Wellington last week. The parlies in the case wore Duncan Henry McGregor and John Edward Genties, of Johannesburg, plaintiffs; and the Public Trustee, defendant. Mr. C. H.' Treadwell appeared for tho "plaintiffs, and Mr. J. W. Macdonald for the Public Trustee, as trustee of the trusts of tho will of: Daniel McGregor (father of D. H. McGro- j gor), who died on February 19, 1890. Under the will of Daniel McGregor, one-! seventh of the residuary estate was to bo held for D. H. McGregor and the income paid to him during his life or until he became bankrupt, or charged or encumbered tho income or some part thereof, or did, or suffered to be done, something whereby tho income, if belonging absolutely to him, ' might become vested in or payable to some other person. On the determination of the trusts there was to be a gift over. On October 18, 1911, McGregor borrowed £79, from Gentles, and. by deed of cession,' assigned his future years' income as security. The deed of assignment was forwarded to New Zealand for registration with the Public Trustee, but was refused recognition os McGregor had no power to deal with the income, and, the deed being an assignment ! of, or encumbranco on, some part of the , income, the assignor had no further right; to the'income. McGregor and Gentles thereupon agreed to treat the deed as in- j operative and they requested the Public Trustee not to act upon it. It was con tended, by the Public Trustee, that this, cancellation was too late; and the gift over must take effect. His Honor's judgment stated that if the income had belonged absolutely to McGregor the document in question would have been a good equitable assignment of a years income. ' It was clearly an assignment within the meaning of tho will. The cancellation mentioned could not have the effect of getting rid of the forfeiture which had already accrued. "It is unfortunate for McGregor," concluded His Honor, »"that his interest under his father's will should have been determined in this way. He certainly must havo executed the assignment in ignorance or fnrgeffulness of tho provisions of the will. That, however, does not prevent the forfeiture from taking effect .... I must make an order, therefore, declaring that the document of October 18, 1911. operated as an assignment under tho provisions of clause 6 of the will so as to determine the trust in favour of McGregor and to cause tho gift over to como into effect." . ' ~,._, , '. An application by plaintiffs for costs out of tho estate was' opposed by the Publio Trustee, and his Honor refused to maKo any order